Check out these guidelines about how you can negotiate added value. The Food & Beverage minimum is typically viewed as a liability because it sits in the hotel contract. Most coordinators work hard to negotiate it down, even when the real catering spending budget of the meeting will certainly surpass the minimum established in the contract. Attempt viewing the hotel's food and drink minimum otherwise. Rather than a responsibility, try seeing it as an advantage that, by meeting or surpassing the food and drink minimum, you may use to drive better value out of your hotel partner.
If you're spending over what the resort requires, you're leaving money on the table. Think of it this way: The first F&B minimum is for the hotel the second minimum amount is for your company. Say you're reserving a sales manager retreat, with 50 individuals for 3 nights. That is 3 breakfasts, 3 lunches, 3 dinners, and possibly a minimum of one cocktail reception. You do your research and show up with your spending budget for the event. This additional spend of £4, 000 means you have real influence to then add value to your overall meeting. For example, if we spend at least £16, 000 on F&B, you will give us these additional concessions.
Then ask for several things which will create real value for the group. Despite your best efforts, you miss your F&B minimum. Not to worry, so long as you have planned ahead. Hotels have wiggle room with F&B minimums, because Penalty Payments Are Pure Profit. Here's the reason: for each £1, 000 a patron spends on F&B, the hotel pays approximately£300 in hard costs. If you miss your F&B minimum, the hotel isn't incurring the costs of those in scarfed meals and in quaffed drinks. In the event that the F&B minimum is not met, Customer will pay 70% of the difference between the F&B minimum and the actual spend. With some clever preparation, you can turn the F&B minimum to your advantage. Feeding hotels the correct information, and offering to step up specific obligations within your control, will keep their tummies full and your spending budget in control.
News Article Written by: Amarat Chagger (Amo) - Digital Marketing Director